Revenue and Profits Jumps at Vislink in 1H 2012

Posted by Joe Zaller
Sep 03 2012

UK-based Vislink plc, which owns the Advent, Link, MRC and Gigawave brands, announced that its revenue from continuing operations for the first six months of 2012 was £27.5, up 38% versus the same period a year ago. Excluding the contribution from Gigawave, which was acquired by Vislink in June 2011, the company’s revenue was £22.4m, up 17% versus the first half of 2011.

Broadcast revenue in 1H 2012 was £24.2m, up 46% versus the first half of 2011, and down 6% versus the second half of 2011.  The 1H broadcast revenue figure includes a contribution of £4.2m from Gigawave, which has added incremental revenues in markets outside of the Americas. Weakness in South America led to a 52% decline in the region to £1.5m, but this was offset by strong performances in Europe and North America.

The company posted a pre-tax profit of £1.4m, compared to a pre-tax loss of £1.9m last year.  On an operating basis, the company reported a profit of £700,000, versus an operating loss of £3.7m last year.

Bookings in 1H 2012 were £25.4m, up 2% versus last year, but underlying orders (excluding the contribution from Gigawave) were down 14% to £20.5m.  The order backlog at the end of the first six months of 2012 was £10.4m, down 16% versus the same period last year.

The company attributed its reduced order intake to lower demand for satellite terminals in the broadcast market.  However, it expects to see improvement in the second half of 2012 thanks to newly introduced products.

Gross margins for the first half of the year were 40.4%, up 1.4 percentage points versus last year.  The company said its margin expansion was due to lower manufacturing overhead costs thanks to a focus on cost control.  The materials margin was 52.4%, down slightly from last year.

The company ended 1H 2012 with £8.4m of cash, down from £10.1m six months ago.  The company says its cash flow will improve in the second half of the year as it reduces its working capital following an inventory build in the first half of 2011 for the London Olympics.

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Outlook

The company reiterated its objective of reaching £80m of sales and £8m of pre-tax profit within three years, saying this goal seems remains realistic and achievable.

Vislink executive chairman CEO John Hawkins said that the company will “continue to seek “bolt on” acquisitions to strengthen our software and services capabilities that exploit the growth of cloud based IP transport technologies.

“We believe that the Group is capable of exploiting the continuing growth of video content contribution both in our traditional broadcast market and also in other vertical markets that, with the development of unlicensed spectrums include opportunities within the pro-sumer markets. The second half has begun positively with orders received of £11.0m (2011: £8.4m) in the 8 weeks to 25 August as we have secured some significant prospects that experienced delays in the first half. The full year outcome is subject to this order intake level continuing throughout the third quarter.

“We are cautiously optimistic that the second half of 2012 will show further improvement in trading. We have a strong order book which underpins our third quarter revenue.”

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Press Release: Vislink plc – 2012 Interim Results Announcement

Vislink Says its Revenue is Up 61 Percent Through April 2012

Vislink Reports Full Year 2011 Results, Reaffirms Goal of Growing Revenue by 60% Within Three Years

Vislink Reports Small Loss in 1H 2011, Announces Strategic Review

More Broadcast Vendor M&A: Vislink Completes Acquisition of Gigawave for £3.75 Million

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